Computers and networks in general, and the Internet in particular, have at least partially changed how individuals manage their finances. For instance, an individual with an Internet connection can check balances in checking accounts, savings accounts, credit cards, mortgages, automobile loans, and the like. Additionally, an individual can transfer funds from a first account to a second account with a few keystrokes and mouse clicks.
Further, an individual can research a company online and make at least a semi-educated decision regarding whether or not to invest in the company. Typically, however, an individual will not have sufficient time or expertise in analyzing financial data. Accordingly, the majority of investors use financial experts that help the individuals reach their financial goals. For instance, an individual may invest in a mutual fund, which includes multiple holdings that are selected by a mutual fund manager. More specifically, the individual may purchase shares of the mutual fund, wherein each share includes the multiple holdings, and wherein each holding makes up a certain percentage of a share of the mutual fund. In another example, an individual may hire a personal financial adviser whose job is to monitor financial markets and recommend investments to users.
There are, however, deficiencies pertaining to the aforementioned approaches to investing. For instance, a mutual fund manager attempts to optimize holdings of the mutual fund for a general population. The mutual fund manager, however, does not take into consideration the investing preferences or situations of an individual investor. For instance, an individual may be employed by a particular company and have exercised stock options while employed with the company—therefore, a significant amount of the financial health of the individual is tied to the particular company. The mutual fund manager, however, typically considers the financial well-being of the general population, and may include the particular company as a holding in the mutual fund, thereby further tying the financial health of the individual to the company. Personal financial advisers can consider the investing preferences of the individual, but typically only those with significant wealth are able to use such personal financial advisers. Furthermore, personal financial advisers often charge a relatively large fee for their advice.